Impact of COVID-19 Pandemic on Dairy Industry in Punjab: Major Concerns and Policy Options

The livestock sector continues to drive rural livelihoods and contribute significantly to the agricultural economy of Punjab. Within livestock sector, milk accounts for about 80% of the total value of output of livestock. In the recent times, dairy sector has undergone rapid growth and structural shifts in terms of establishment of dairy cooperatives, producer companies and private dairy companies, which are seen as one of the several pathways to diversify and boost the rural income and livelihoods in crisis ridden agrarian state of Punjab. It is argued that imposing of lockdown and curfew disrupted all the economic activities and created disruptions in agriculture and allied sectors, which may have serious implications for food production and farmer incomes. In this context, it becomes imperative to explore how was the dairy sector in Punjab, particularly the milk producers, affected due to the outbreak of COVID-19? How did the milk producers and the state government respond to COVID-19 pandemic to ensure sustainable dairy based livelihoods which would also work in the post-COVID-19 period? The study reveals decline in milk sales and procurement, increase in cost of dairy production, rise in animal health issues resulting in low milk productivity as veterinary services and dairy input supplies were affected due to the outbreak of COVID-19. The study brings out policy implications of these changes and suggestions to meet challenges from such pandemic outbreaks to make the dairy enterprise a win–win situation for all the stakeholders.